For Singapore companies, grasping the essentials of taxation isn’t just about obeying the law – it’s a smart strategic move. One crucial document that every Singapore company encounters is the Singapore Income Tax Notice of Assessment (NOA).
In this guide, we’ll simplify the importance of the Singapore Income Tax Notice of Assessment. Whether you’re a CEO, business manager, or owner, this information is vital for informed financial decisions and staying in sync with Singapore’s tax rules.
What is a Singapore Income Tax Notice of Assessment (NOA)?
The Singapore Income Tax Notice of Assessment (NOA) commonly known as a ‘tax bill,’ is a critical document issued by the Inland Revenue Authority of Singapore (IRAS) to taxpayers. It serves as your official NOA for the Year of Assessment.
The Singapore Income Tax Notice of Assessment is typically issued from the end of April onwards. If a taxpayer has provided their Singapore mobile number to IRAS and updated it as needed, they will receive an SMS when their NOA is finalized. This alert can be configured by logging into myTax Portal and clicking on ‘Update Contact Details.’
The Importance of Your Singapore Income Tax Notice of Assessment
The Singapore Income Tax Notice of Assessment (NOA) is important because it ensures tax compliance. It provides a detailed breakdown of your income, deductions, and reliefs, offering transparency in the tax assessment process.
Furthermore, the Singapore Income Tax Notice of Assessment is the basis for decision-making. It offers insights into your company’s tax position, which is invaluable for budgeting and strategic planning. With accurate tax information, you can make informed financial choices that align with your business objectives.
Company must pay the amount stated in the Notice by the due date even if you object to the assessment.The objection can be file via Object to Assessment service at myTax Portal, which provides a streamlined way to file objections.
IRAS will review your objection and request for further information from you if necessary. You will be informed of the outcome of the review within 6 months from the date of the last correspondence providing complete information to IRAS. For complex cases where more time is required to review the tax issue under objection, IRAS will inform you of the estimated time required.
However, even if you are filing an objection, you must still pay the taxes assessed within 1 month from the date of the NOA. If your objection is successful, IRAS will refund any excess amount paid.
Types of Singapore Income Tax Notice of Assessment (NOA) for Singapore Companies
The Inland Revenue Authority of Singapore (IRAS) issues four distinct types of Singapore Income Tax Notice of Assessment (NOA) tailored to various circumstances.
How to file ECI? Type 1 NOA
Type 1 NOA
This category applies when a company successfully files its Estimated Chargeable Income (ECI) for the relevant tax year. It signifies compliance with the tax regulations and is typically initiated by the company or a tax agent no later than 3 months after the financial year ended.
Type 2 NOA
Companies may receive a Type 2 NOA from the IRAS under specific conditions. These include failing to file the ECI within three months of the financial year-end, missing the IRAS deadline for Form C, Form C-S and Form C-S (Lite) submissions, declaring a lower Estimated Chargeable Income than required, or being subject to an Advance Tax Assessment issued by the IRAS. This type of NOA serves as a notification of non-compliance or advance tax assessments.
Type 3 NOA
When a company completes the filing of its Form C,Form C-S and Form C-S (Lite) , the IRAS generates a Type 3 NOA. This NOA acknowledges the accurate submission of tax-related forms and compliance with tax regulations.
Type 4 NOA
The Type 4 NOA represents the final tax assessment issued by the IRAS. It is provided after the IRAS has conclusively assessed the company’s chargeable income and associated tax liabilities. It’s essential to note that if a company disagrees with the final NOA, they have a window of two months from the date of issue to file a formal objection.
How to Obtain Your NOA?
Several methods are available to obtain your NOA and Singapore Income Tax Notice of Assessment (NOA).
Via SMS or Email
If you have ensured that the email address or local mobile number is updated with IRAS, you will receive a convenient SMS or email once the NOA is finalized and ready for viewing.
Via myTax Portal
To access your previous years’ NOAs, visit myTax Portal to view or print a copy of these documents. It’s important to note that you can typically access NOAs for up to three previous years through this portal.
For NOAs accessible via myTax Portal, you can easily view or print them using software such as WinZip®, Adobe Acrobat Reader, or similar programs. Here’s how:
- Log in to myTax Portal.
- Navigate to ‘Notices,’ then select ‘Individual,’ and finally, ‘View Individual Tax Notices.’
Via Live Chat or In-Person
In cases where the NOAs are not available on myTax Portal, you have other options:
- Through Live Chat, You can request a copy of your NOA, which may span up to seven previous years (subject to availability). Keep in mind that search and document fees will apply.
- If you prefer to collect your NOAs from the Taxpayer & Business Service Centre at Revenue House, make an online appointment at least two working days in advance.
If you send a representative, they will need to bring along an authorization letter from you, including your details, their details, a description of the documents needed, and the original NRIC/FIN (or a scanned copy of your passport) from you and your representative.
Lastly, suppose you find it challenging to retrieve your documents through mytax.iras.gov.sg. In that case, you also have the option to request a copy of the documents to be sent to you via post.
How to Read Singapore Income Tax Notice of Assessment (NOA) for Companies?
In the Singapore Income Tax Notice of Assessment (NOA) for companies, there are several critical pieces of information that company executives and business owners should be aware of:
Assessable Income Amount
This figure represents the total income reported per your Estimated Chargeable Income (ECI) filing, Form C,Form C-S and Form C-S (Lite). It reflects your company’s cumulative income before applying corporate tax deductibles.
Chargeable Income Amount
The Chargeable Income Amount is the actual income on which the Inland Revenue Authority of Singapore (IRAS) levies taxes. It is calculated by subtracting allowable deductibles from the Assessable Income Amount.
The Tax Payable is the tax that IRAS requires your company to pay. This figure is determined by applying the prevailing tax rates to the Chargeable Income Amount.
Tax Repayable / Discharged Amount
If, upon review, IRAS determines that the final tax payable amount is lower than the tax already paid (applicable for NOAs issued after ECI filing), a Tax Repayable or Discharged Amount will be included in the NOA, signifying a tax refund to your company.
Deadline for Filing an Objection to Your Singapore Income Tax Notice of Assessment (NOA)
Upon receiving your NOA, it is highly recommended to review it diligently. If you find any discrepancies or disagree with the tax assessment presented in your NOA, you have a window of 30 days from the date of the NOA to file an objection to the assessment. This process allows you to dispute the calculations or information presented in your NOA formally.
How to Read Singapore Income Tax Notice of Assessment (NOA) for Individuals?
The Singapore Income Tax Notice of Assessment (NOA) for individuals provides a comprehensive overview of their tax situation. Similar to the NOA for Singapore companies, it details assessable income, albeit from different sources. Individuals’ income sources encompass trade, employment, and rental income, meticulously outlined in the NOA.
How We Can Help: Our Taxation Service
SJH Advisory offers specialized taxation services tailored to assist company executives and business owners navigate Singapore’s complex tax landscape. With a team of experienced and accredited business consultants, SJH Advisory is well-equipped to address your taxation needs.
Our services encompass various aspects of taxation, including a meticulous review of your Singapore Income Tax Notice of Assessment (NOA). Furthermore, if you encounter discrepancies or issues with your NOA, SJH Advisory can provide expert guidance and support in filing objections and liaising with tax authorities.
Take the first step towards tax efficiency and financial success by scheduling a FREE consultation with our experienced consultants today.
Singapore Income Tax Notice of Assessment - Frequently Asked Questions
Taxpayers expect to receive their NOAs from the end of April 2023 onwards for the Year of Assessment 2023. However, due to batch processing, some individuals or companies may receive them earlier than others.
If you believe there are errors or discrepancies in your NOA, you have 30 days from receipt to file an objection with IRAS. It is important to provide supporting documents as well as a clear explanation of the problem.